LS5 - Balance Of Payments Flashcards
1
Q
What is the components of the balance of payments?
A
Current account and balance of trade in goods and services.
2
Q
What is the current account?
A
Where payments for the purchase and sale of goods and services are recorded
3
Q
What is the balance of trade in goods and services?
A
In goods it is, raw materials like oil and gas. In services it is, banking insurance and consultancy.
4
Q
What is current account deficits and surplus?
A
Deficit is when a country has a net outflow of income and are debtor nations. Surplus is when a country has a net inflow of income and are creditor nations.
